What is your company’s current focus in terms of exploration activities and where do you see the most potential for future gold discoveries?
We are currently focused on rapidly expanding our gold and silver resource at the Santa Fe Mine Project, in Nevada, US through the drill bit. Our drilling programme is centred around the Slab-Calvada area at Santa Fe, where previous drilling outlined substantial outcropping, gold, and silver resources.
We are seeking to expand the known resources beyond what is outlined in the project’s technical report, with the goal of producing an updated resource estimate early in 2024. In parallel, we are completing biological and cultural studies for our “plan of operation” to be filed with the Bureau of Land Management. When completed, the plan of operation will not only allow for an expanded exploration drilling programme, but it will also significantly shorten our timeline, if and when a production decision is made.
The company has been working hard to advance its Santa Fe Mine Project, particularly with the recent acquisition of West Santa Fe. What are the next steps in terms of growth strategy?
We are pleased with the West Santa Fe transaction as it has the potential to add significant gold and silver ounces to our company-wide resource base.
We consider this as a satellite project, just 15km away from the Santa Fe Mine, with paved road access. The synergies between the two projects could allow for very low-cost mining in future operations. Currently, Lahontan is focused on validating the historic data, re-mapping the project area, and geochemical sampling, while simultaneously permitting our round one drill programme. We hope to begin drilling at West Santa Fe later this year, or early in 2024. Drilling will focus on validating nearly 13,000m of historic drilling followed by step-out holes to expand the footprint of the mineralized system.
How does operating in Nevada compare to other jurisdictions?
Nevada is a Tier 1 mining jurisdiction, with access to work force, a straightforward and streamlined permitting process, and a pro-mining attitude. Walker Lane has been a somewhat untapped area of Nevada, which has become increasingly more active in recent years with the shift in metal prices. We have an operating open-pit, heap leach gold mine adjacent to Santa Fe, with numerous other mining projects either under development or in the planning stages. Compared to other jurisdictions globally, Nevada is the clear leader in the mining space and an excellent place to invest in mining and exploration capital.
How do you see the current state of the gold market and what factors do you see driving future price movements?
We believe gold prices will continue to strengthen as uncertainty in the world continues; gold remains stable and will always be a safe haven. Despite week-to-week volatility, gold has seen price appreciation over the last 20 years that is virtually unparalleled in the metals sector. This long-term trend in gold prices keeps investors, explorers, and miners excited and underpins why investing in junior mining stocks is an excellent proxy for gold itself.
This long-term trend in gold prices keeps investors, explorers, and miners excited and underpins why investing in junior mining stocks is an excellent proxy for gold itself
How do you think gold is performing compared to other commodities?
Given the activity of the central bank purchasing of physical gold, we believe this is a great indicator of how important gold is and will be for the future. Central banks purchase gold because they believe that current prices do not reflect the long-term value of the metal and they view current gold prices as a discount. Put simply, the return on investment for gold purchased today exceeds what the central banks believe they can receive from other investments, e.g., commercial credit, bonds, etc. If this strategy works for central banks, it should work for all investors.
